Nearly 400,000 FTX Users Risk Losing $2.5B Without KYC by June 1

Thousands May Miss Out on Billions in Repayments Nearly 392,000 FTX users may forfeit a combined $2.5 billion in crypto repayments after failing to initiate Know Your Customer (KYC) verification, according to an April 2 filing in the U.S. Bankruptcy Court for the District of Delaware. Initially due by March 3, the deadline for starting the KYC process has now been extended to June 1, 2025. However, users who don’t meet the new deadline risk having their claims disallowed and permanently expunged. Claims Breakdown and What’s at Stake Court documents reveal that claims under $50,000 account for approximately $655 million, while claims exceeding $50,000 could total $1.9 billion — bringing the total at-risk funds to over $2.5 billion. FTX is preparing its next repayment round on May 30, targeting over $11 billion in repayments. Under the recovery plan, 98% of creditors are expected to receive at least 118% of their original claim in cash. How to Complete the KYC Process FTX users encountering issues with the verification process are advised to email FTX support at [email protected] to receive a ticket number. They must then: Log in to the FTX support portal Create an account Re-upload required KYC documents An April 5 post from Sunil, an FTX creditor and Customer Ad-Hoc Committee member, confirmed that affected users can resubmit their applications to restart the process. Industry Impact and Recovery FTX’s collapse marked a low point for crypto markets, triggering widespread bankruptcies and prolonged market downturns. Despite the turmoil, over $1.2 billion was already repaid in February by FTX Digital Markets, the Bahamian subsidiary. Though not market-moving in itself, the start of repayments signals a recovery phase for the crypto industry, with many expecting a significant reinvestment into digital assets as confidence rebounds.

Source: BTC Pulse